Letter from the President

Letter from Chameleon Chair President/CEO Jerry Smolar
July 31, 2009

To Chameleon Clients, Prospects, Friends & Family:


I am writing to each of you to announce that Chameleon Chair® and Classic Party Rentals today announced that we have expanded our business relationship which began in 2007.  

Under this new relationship, Classic will assume the management and operations of Chameleon’s rental business throughout the United States, including Southern California and Las Vegas.  Chameleon Chair® will continue to operate as an independent company with its primary focus on design, manufacture and sale of its proprietary line of products, but will cease direct rental activity.  Chameleon will continue to introduce new designs and products to the Special Events Industry and other markets to build the revenues of both companies.

This joint venture allows Chameleon Chair® to focus on its business as a designer and manufacturer of its products and provides a greater opportunity for clients to “one-stop-shop” for event rentals when selecting Chameleon chairs.  Chameleon’s products, coupled with Classic’s established sales, service and transportation infrastructure, present a powerful combination in meeting our clients’ needs.  

Classic Party Rentals will now manage Chameleon’s rental operations in Southern California from Chameleon’s Hawthorne facility, as well as its satellite warehouse and showroom in Las Vegas, Nevada.  It is anticipated that the Hawthorne distribution center will be relocated to generate operating efficiency and cost reductions.

Chameleon rental operations will now fall under the direction of Lonny Eggleston, Unique Tabletop Rentals General Manager, and other members of his management team.  The Chameleon Chair® senior management and design staff will work closely with Classic during this transition.  To more fully understand this joint venture arrangement, I am providing a series of questions and answers to assist you:


Question:
I am a Chameleon customer in Southern California (or Las Vegas).  What happens with my orders?
Answer:
All orders delivered on or before July 31, 2009, will be billed and paid to Chameleon Chair®.  Any orders dated August 1, 2009 or after, will be fulfilled by Classic Party Rentals out of Chameleon’s distribution center in Southern California or Las Vegas, as applicable.

Question:
I have a proposal for an event later this year.  Will my pricing or terms change?
Answer:
No.  All written Chameleon proposals will be honored by Classic.

Question:
I have an order for an event for later this year for which I paid Chameleon a deposit.  What happens to that deposit?
Answer:
All customer deposits along with the related order will be forwarded to Classic on Friday, July 31, 2009.  Any such deposits will be applied against your final billing.

Question:
Who should I call?  Will the phone number change?
Answer:
Chameleon’s main phone number (310) 973-8200 will continue to be a number to call to place your orders, ask questions about orders, etc.  However, in light of this new partnership, you can always call your Classic Party Rentals sales representative to place an order.

Question:
I do not use Classic.  Can I still call Chameleon?
Answer:
Yes you can.  However, you will be assigned a sales representative who is in a position to assist you in your geographic area.

Question:
What is happening to Chameleon’s amazing delivery crew?
Answer:
Most of our delivery crew and operations personnel will become Classic employees.  You should receive the same high level of service you’ve received in the past.

Question:
Will I still have the ability to request custom design?
Answer:
Absolutely.  Teri Rudin, Chameleon’s Vice President-Development, will be working closely with Classic sales representatives and clients on these types of projects.

Question:
Will Chameleon still be bringing new products to market?
Answer:
Absolutely.  We have just released a new Mahogany-colored Bella Fleur chair and plan to introduce a vintage Ivory Bella Fleur in the near future.  Other chair colors, styles and coverings will continue to be produced.  

Question:
Who do I call if I have a delivery or customer service issue?
Answer:
You are always free to call our main distribution center (310) 973-8200 or your Classic sales representative.

Question:
So what’s going to happen to Chameleon Chair® as a company?
Answer:
As previously mentioned, Chameleon will continue to operate as an independent company with our primary focus on design, manufacture and sale of our proprietary line of products to the hospitality industry, event houses, restaurants and for residential use.  We just will not be in the rental business.  

In this transition, please rest assured that we and our new partner, Classic Party Rentals, will continue to provide quality products, personal service, and we will continue to ensure your success!

If you have any further concerns, please feel free to email us at info@chameleonchair.com, or just call!

We and our partner look forward to working with you.

All the best,

Jerry Smolar
President and CEO
Chameleon Chair